Top 5 Stocks That Could Double in the Next Year According to Analysts

1. Bank Alfalah Limited (BAFL)

Average analyst upside: 127%

Bank Alfalah Limited presents a balanced investment case built around steady deposit growth, expanding digital operations, and gradual improvement in balance sheet efficiency. While earnings showed some pressure in the latest period, the underlying business momentum remains strong across key operational areas.

📢 Announcement: You can now access our services and similar analyses by opening an account with us via JS Global

Don't miss:

• Top 5 Analyst Questions From Lucky Core Industries (LCI) Corporate Briefing
• 5 Reasons Why MEBL Could Continue Rising Despite a Growth Slowdown
• AKD Predicts PSO Could Double From Here

Investment case

The core story for BAFL is relatively straightforward. The bank is scaling its deposit base, strengthening its investment book, and investing heavily in digital infrastructure. Together, these factors support a medium-term outlook driven more by structural growth than short-term earnings volatility.

Financial performance (CY25)

In calendar year 2025, Bank Alfalah reported a profit after tax of PKR 27.8 billion, which reflects a 30% year-on-year decline. Despite the drop in profitability, the bank delivered earnings per share of PKR 17.63.

Importantly, shareholder returns remained strong. The bank increased its dividend payout by 24% to PKR 10.50 per share, signaling confidence in long-term cash flow stability.

Key balance sheet metrics

📢 Announcement: We're on WhatsApp – Join Us There! 

The bank continues to show healthy growth in its core funding base and investment book. Total deposits reached PKR 2.5 trillion, reflecting a 17% year-on-year increase, while current accounts also expanded at a similar pace.

The investment portfolio grew to PKR 2.18 trillion, up 9%, with a strategic tilt toward floating-rate instruments (40%) and T-bills (33%). This positioning helps the bank manage interest rate cycles more effectively.

Capital strength remains solid, with a Capital Adequacy Ratio (CAR) of 15.9%, indicating a stable buffer to support future expansion.

Growth drivers supporting the outlook

A key strength for BAFL is its strong operating momentum across multiple business lines.

Trade finance volumes reached US$6.4 billion, growing 21% year-on-year, reflecting its strong positioning in import and export financing. On the remittance side, the bank processed US$2.8 billion, securing a 13.9% market share, which continues to support fee-based income.

Digital transformation has become a major growth engine. Digital throughput surged 80% year-on-year to PKR 9.1 trillion, showing rapid adoption of digital banking channels. Over the last five years, IT spending has consistently averaged 9.2% of operating expenses, highlighting a long-term commitment to digital infrastructure.

On the lending side, gross advances increased by 29% year-on-year, while asset quality remained stable with an infection ratio of 4.1% and provision coverage of 108%.

Efficiency and forward outlook

While the cost-to-income ratio rose to 63%, this increase is largely linked to branch expansion and marketing initiatives, particularly in home remittances. Management expects this to gradually normalize to the 50–60% range as efficiencies improve.

Looking ahead, the bank expects to sustain 17% deposit growth while continuing to optimize its funding structure by reducing reliance on high-cost borrowings and improving net interest margins.

Bottom line

Bank Alfalah’s investment story is not driven by short-term earnings growth alone, but by a broader transformation in scale, efficiency, and digital capability.

With strong deposit expansion, improving operational leverage, and a rapidly growing digital ecosystem, BAFL remains well-positioned to benefit from Pakistan’s evolving banking landscape.

Final Outlook

Across the board, Maple Leaf Cement Factory Limited, International Steels Limited, Bank Alfalah Limited, D.G. Khan Cement Company Limited, and Kohat Cement Company Limited represent a mix of earnings recovery stories, expansion-driven growth, and strong balance sheets.

While near-term volatility remains a feature of the market, improving macro conditions and company-specific catalysts continue to support the case for potential re-rating. As a result, these five stocks remain key names to watch for meaningful upside over the next year.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →